Long-term Projections of Consumer Demand in the United Kingdom: the Cambridge Growth Model
Angus Deaton
Chapter 17 in Methods of Long-term Planning and Forecasting, 1976, pp 368-381 from Palgrave Macmillan
Abstract:
Abstract The projections of consumer demand which are described in this paper are undertaken as part of a large disaggregated model of the United Kingdom. This model, which has been constructed over a number of years by Professor Richard Stone and his colleagues in Cambridge [4], contains some 1,000 equations as well as distinguishing thirty-five industries and more than forty commodities. Within such a system the accurate projection of consumer demand is a matter of considerable importance. Forecasts of industrial structure and of employment patterns are perhaps most immediately affected, but since the model is closed, these in turn reflect back via the distribution of income and relative prices to consumer demand itself. In the present discussion this simultaneity is ignored and we present only the consumption sector itself. More precisely, we describe how total consumers’ expenditure on non-durable goods is allocated between the different commodities in the budget. The total itself is determined as a function of disposable income using a model of the type described by Stone [9].
Keywords: Consumer Demand; Income Elasticity; Engel Curve; Stone Model; Budget Data (search for similar items in EconPapers)
Date: 1976
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-02649-4_17
Ordering information: This item can be ordered from
http://www.palgrave.com/9781349026494
DOI: 10.1007/978-1-349-02649-4_17
Access Statistics for this chapter
More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().